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Legal row ignited over Center Parcs

A legal battle is brewing over who foots the multi-million pound bill for fire damage suffered at Center Parcs in Suffolk last April.

AXA Corporate Solutions, the lead insurer on the risk, is under ...

A legal battle is brewing over who foots the multi-million pound bill for fire damage suffered at Center Parcs in Suffolk last April.

AXA Corporate Solutions, the lead insurer on the risk, is understood to have reserved its right to void the policy on the basis of alleged non-disclosure by the broker, believed to be Marsh.

However, Center Parcs is also said to be considering action against both the insurer and broker over alleged failures to properly survey the risk.

Negligence on the part of contractors who worked on the building has also been alleged.

Center Parcs referred queries about the claim to its loss adjuster Cunningham Lindsey.

Cunningham Lindsey described the case as "complex" and declined to comment on the basis of client confidentiality.

The 4 April fire ripped through Center Parc's Suffolk site, starting in the kitchen block and spreading to the main plaza area containing seven restaurants, five shops, a ten-pin bowling alley and two sports halls.

About 3,500 holidaymakers and 400 staff were evacuated.

At the time, the cost of the blaze was estimated to be close to £100m, with Cornhill Insurance following AXA on the risk.

The current disagreement is believed to stem from a risk survey by the broker, which, it is claimed did not disclose problems with the centre's interior and exterior linings. There were no sandwich or composite panels involved in the fire.

It is understood AXA may not have conducted its own survey before accepting the risk, relying instead on that by the broker.

The insurer is now said to considering voiding the claim on the basis of the broker's alleged non-disclosure of the panel problem.

However, pundits have suggested that Center Parcs could also consider action against the broker and insurer over their alleged survey failures.

Other sources said a further claim was being considered against contractors who worked on the building linings.

AXA declined to comment while its "investigation" into the claim was ongoing.

Kennedys Solicitors confirmed that it was advising AXA on the claim, but also refused to comment on the basis of client confidentiality.

A spokeswoman for Marsh said the broker could neither confirm nor deny whether it was involved.

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